Victoria’s Secret shares drop 3% following Q2 miss

Victoria’s Secret & Co. (VSCO) shares fell more than 3% after-hours following the company’s reported Q2 results, with EPS of $0.24 coming in worse than the consensus estimate of $0.27. Revenue was $1.43 billion, below the consensus estimate of $1.44B.

“We delivered second quarter sales, adjusted operating income and adjusted diluted earnings per share within our guidance range while the macro environment continues to put pressure on our customer base and our core intimates categories,” said CEO Martin Waters.

For Q3, the company expects EPS of ($0.70)-($1.00), worse than the consensus estimate of ($0.14). Q3 net sales are expected to decrease in the low- to mid-single-digit range year-over-year.

For the full year, the company expects net sales to decrease in the low-single-digit range compared to last year, compared to the consensus estimate of approximately a 2% decrease.

By Davit Kirakosyan